Option Review

: The right to sell an asset. You buy a put if you expect the price to go down. 🔑 Essential Vocabulary

are financial contracts that give you the right—but not the obligation—to buy or sell an asset at a set price within a specific timeframe. option

Options provide massive leverage, but they are highly volatile. Industry studies frequently show that a vast majority of retail options traders lose money due to a lack of knowledge and poor risk management. Never invest money you cannot afford to lose! : The right to sell an asset

: The cash fee you pay to purchase the option contract. option